In the past, the process of applying for a personal loan was long and complex, and customers usually had to wait for several weeks before the funds of the loan were dispersed. Now, companies have made the process of obtaining a loan swift and easy, and personal loans have more convenient terms and conditions and many more payment options.

The Application:

Many years ago, a customer had to walk into a bank or a financial institution to fill out an application, and usually, the application consisted of four to five pages and included many personal questions.

Today, a person can apply for personal loans online or over the phone, and most applications only have one or two pages.

In addition, several federal laws prevent companies from asking customers certain personal questions, and customers only have to answer questions that directly pertain to their ability to pay back a loan.

The Interest Rates:

Ten years ago, interest rates were much higher than they were today, and the only people who could obtain personal loans with low interest rates were customers who had excellent credit.

During the last several years, increased competition among financial institutions has encouraged most companies to significantly lower their interest rates.

Bad Credit:

During the financial crisis of 2008, most banks wouldn’t offer loans to people who had bad credit, but now, many companies have shifted their focus and are now offering various types of bad credit loans.

Some financial institutions guarantee that they can approve a person for a loan regardless of the customer’s credit score.

The Duration:

Several decades ago, banks did not allow customers to choose the duration of their loans, and if a bank offered a personal loan with a duration of three years, the customer could either take the loan or leave it.

Now, companies allow customers to choose a loan with a duration of one year to ten years, and some companies will even let a customer alter the duration of their loan while they are paying it back.

The Amount:

The amount of the loan that a customer can obtain is no longer based on their credit score. Instead, the amount of the loan is based on the amount of money that the customer earns per month, and many financial institutions now verify a customer’s income before dispersing the loan.

Pre-Approval:

When a company checks a customer’s credit score, that inquiry can lower the customer’s credit score by several points.

Now, many companies preapprove customers for bad credit loans online or over the phone without checking their credit scores.

Dispersal Of The Funds:

Usually, a company will disperse the funds of an approved loan into the customer’s bank account within one or two business days, or the customer can request to have the funds dispersed in the form of a check.

The Terms And Conditions:

In the past, a customer who made a late payment would receive a fee or thirty dollars to forty dollars, and some companies even charged a relatively large fee if a customer payed off a loan early.

Now, customers can pay off loans early with no fees, and many companies allow a customer to make one or two late payments per year without any extra charges.

Improving The Credit Score:

When a customer begins to make payments for a loan, their credit score will improve rapidly.

In the past, customers had to wait for several weeks or even months for a company to report payments to the credit bureaus, but now, companies can swiftly report payments to the credit bureaus online.

When searching for personal loans in today’s world, there are many things to consider. Some of these include the application process, the interest rates, bad credit loans, the duration, the amount, obtaining pre-approval, the dispersal of the funds, the terms and conditions and swiftly improving the customer’s credit score.

Quick Links

Online Loans

Bad Credit - Your credit history is a record of all past financial commitments and your pattern of repayment, as well as an overall look at your total debt load. Credit reference agencies use this information to assess your credit worthiness and assign a credit score. Lenders then use the credit score as a factor in deciding whether or not to underwrite your loan.

Bad Credit Loan Sources

DrCredit.com is not a lender and therefore cannot tell you the interest rate and fees that pertain to your particular loan.
After getting approved by one of our affiliated lenders, you will be shown the rates and fees that will be associated with
your loan, should you accept the approval. After being shown these terms, you will then have the option to accept them. You
are under no obligation of these terms, until they have been formally accepted.

Consequences of Non-payment

Once you have formally accepted the terms and conditions of your loan approval, you have essentially agreed to repay the loan
at the interest rate and the specific time frame discussed between you and your lender. If at any time you are unable to pay
the loan according to these terms, you will possibly incur additional fees. DrCredit.com does ensure that all lenders that we
do business with are reputable and trustworthy lenders that conduct collection actions in a fair, legal, and moral manner. It is
up to you to study the policies of your particular lender and choose whether you agree with them before you formally agree to
accept the loan.

Possible Effect to Credit Score

Your credit score is a number calculated using information from your credit history. The credit history information comes from
credit reporting agencies. Credit scores represent your credit worthiness and indicate the likelihood that you will repay a debt
as agreed. Making late payments, missing payments, rolling over a payment, and having too many credit inquiries witin a small
period of time are all examples of actions that will negatively affect your credit score. Making payments on time, repaying a
loan, and not using over half of the credit limit available on credit cards are examples of actions that will positively affect
your credit score.

Collection Practices

If a payment is missed and the lender has not been contacted, then collection is the next step that the lender will likely take.
This involves being contacted by the lender via phone, email, or mail. If their attempts to contact you fail, the account is usually
handed over to a collection agency. This can have severe negative consequences. It is very important that you understand all of your
lender's guidelines regarding repaying your loan to avoid any collection activity. As mentioned previously, DrCredit.com is not a
lending institution, therefore, we hae no involvement in the collection process.

Loan Rewnewal Policies

DrCredit.com works with numerous lenders, all of which have their own renewal policy and guidelines. There are two general types of
renewals:
-Unlimited Renewals are known for having the highest risk for borrowers and are allowed to constantly be renewed.
-Automatic and Borrower Intiated Renewals which have specific time limits and are required to be repaid when the specified time limit
has been reached.
Before accepting a personal loan offer, make sure that you have a clear understanding of each renewal option given by your lender. Read through their
renewal policy and make sure that you understand it thoroughly.

DrCredit.com is not a lender. The offers that appear on DrCredit.com’s website are from companies from which DrCredit.com receives compensation. This compensation may influence the selection, appearance, and order of appearance of the offers listed on the website. However, this compensation also facilitates the provision by DrCredit.com of certain services to you at no charge. The website does not include all financial services companies or all of their available product and service offerings.

DrCredit.com cannot guarantee you will be approved, but they will match your profile with their database of lenders to give you the best offers for your situation. Not all lenders can provide the advertised loan amount. As a condition of extending credit, some, but not all lenders may run a credit check. This website does not constitute an offer or solicitation to lend. This site will submit the information you provide to a lender in our partners loan network. Providing your information on this website does not guarantee that you will be approved for a personal loan.

Each lender is required to provide you, the consumer, with all costs associated to be expressed as an annual percentage rate of interest (APR). This information will include the identity of the creditor, the amount financed, the itemization of amount financed, the finance charge, the annual percentage rate, your payment schedule, and your total number of payments. Your APR will vary depending upon which product you select from which lender.

Our lending network consists of many direct lenders with APRs ranging from 6.46% - 34%.
Minimum repayment term is one year.
Maximum repayment term is six years.

In addition, the Federal Equal Credit Opportunity Act prohibits creditors from discriminating against applicants on the basis of color, race, religion, sex, marital status, and age.

The operator of this website is not an agent, representative or broker of any lender and does not endorse or charge you for any service or product. Cash transfer times may vary between lenders and may depend on your individual financial institution. In some circumstances faxing may be required.

States Serviced: With each state having its own rules and regulations governing personal loan lenders. APR, loan amount and repayment term will vary based on your credit worthiness, state and lender.

*Representative Example: Borrow $5,000 for 12 months, repay with monthly payments of $433.79, with an annual percentage rate (APR) of 7.50%, for a total repayment cost of $5,205.45.